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5.You invest $100 in a mutual fund that grows 12 percent annually for three years. Then the fund experiences an exceptionally bad year and declines
5.You invest $100 in a mutual fund that grows 12 percent annually for three years. Then the fund experiences an exceptionally bad year and declines by 40 percent. After the bad year, the fund resumes its 12 percent annual return for the next three years. a. What is the average percentage change for the seven years? b. If you liquidate the fund after nine years, how much do you receive? c. What is the annualized return on this investment using a dollar-weighted calculation and using a time-weighted calculation?
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